How to save money on a rental car this spring break — and traps to avoid

For a number of spring breakers, a rental car is a necessity that can add hundreds of dollars to a vacation after paying for flights, accommodations and excursions.

While rental car prices have dropped from COVID-19 pandemic highs of hundreds of dollars per day in some locales — when supply-chain snarls followed by a sudden rebound in travel led to widespread vehicle shortages — they can still be expensive. 

The daily rental car price for summer 2024 is averaging at $84, down about 10% from two years ago, according to data from Kayak.com. Currently, car rental prices for Easter weekend are even cheaper, down 19% compared to two years ago. 

Here are ways to save money on a rental car, financial traps to avoid and how to determine if a rental car company is offering a good deal — or trying to take you for a ride.  

Pay with a credit card

As is generally the case when making purchases, it's wise to pay for your rental car with a credit card, as they typically have built-in protections — particularly when it comes to booking a car. For example, some credit cards offer primary and secondary car rental insurance to cardholders, meaning you don't have to purchase insurance as an add-on at the rental counter.

A few credit cards, including the Chase Sapphire Reserve, Chase Sapphire Preferred, Capital One Venture X and United Explorer cards come with what's known as primary rental car insurance. 

It's still important to know exactly what kinds of damage is covered, and when, if you're a vehicle owner, you could have to rely on your own policy. 

"The downsides of secondary insurance is it usually doesn't kick in until you've gone through your primary insurer," Bankrate senior industry analyst Ted Rossman told CBS MoneyWatch.  Additionally, even primary credit card insurance only covers damage to the vehicle that you've rented. 

"It won't cover potential damage to other cars or people, if someone in another car, or a pedestrian is injured," Rossman added.

Do I need to buy insurance?

If you're not a vehicle owner yourself and don't have care insurance, it could provide peace of mind to purchase a policy from the rental company, according to Rossman. 

"Credit card rental insurance can offer useful benefits, but you want to make sure you're filling in gaps perhaps with personal car insurance company," he added. 

Take a short video of the vehicle

As far as damage goes, it's also wise to take a short video of the car's exterior before driving it off the lot, to document any existing scratches or dings, so you're not liable upon returning it. 

"I always take a one-minute video showing the top, bottom, left, right so you have a video in the rental company's garage showing what it was like. Do same thing when you turn it back in," Summer Hull, content director at travel site The Points Guy, told CBS MoneyWatch. "It saved me once," said Hull, referring to a time when she was being pinned for damage on a rental. "I had to lean back on the video. It can really help you down the road," she said.

Shop around, leverage memberships

There is a lot of variation in car rental prices from site to site, and company to company, which means it pays to shop around. Consumers can get some of the best rental car deals through memberships they may already have including Costco, AAA, and AARP cards.

Costco Travel, which is affiliated with the shopping club, typically has lower prices than one will find elsewhere. 

"Only Costco members have access, but I've consistently found that their prices are 15%-20% cheaper," said Scott Keyes of Going.com. 

AAA an AARP offer discounts and promo codes on car rentals too. 

Don't rent at the airport

Stay away from picking up your rental at the airport, where rates are typically higher. 

Most major car rental agencies have rental locations about five miles away from airports where you can find substantially cheaper prices, according to Keyes. "The convenience of renting at the airport often comes at a price," he said.

Don't prepay

It's a good idea to lock in a rental as soon as you know your travel dates, but do not pay in advance: Not only can you be charged for a cancellation, but you can also miss out on better deals. 

"When you don't have to prepay, you have a lot of options to take advantage of price drops in the future," Keyes said. "You never want to prepay, even if you're offered a small discount. You give up ability to take advantage of future discounts. That's the biggest thing folks can do to get the best price on car rentals."

Gas it up on your own

It pays to make time to fill up your rental car's gas tank before returning it to your agency of choice, as opposed to paying a fee for them to do it for you. 

"The price you pay to fill the tank yourself is generally going to be cheaper than the price the rental company charges for the same amount of gas," a Kayak spokesperson told CBS MoneyWatch. 

Hull recommends filling up your car's tank far away from airports, where rates are cheaper. "Stations near airports charge jacked-up rates," she said. 

What's the cheapest rental?

It may sound counterintuitive, but consider upgrading your vehicle for a good deal. It may not be bottom-of-the-barrel cheap, but there's only a few dollars difference between average full-size car rentals and economy rentals, according to Kayak's data. In other words, you can get more bang for your buck by upgrading. 

In some locales, electric vehicle rentals are cheaper than gas car rentals, according to Hull. But note that if you choose an EV, you'll need to make a plan to charge it, which can come at a cost.